Azernews.Az

The level of dollarization has been falling in Azerbaijan in the past ten years and the share of bank deposits held in national currency has more than doubled, the Central Bank of Azerbaijan (CBA) said Tuesday.

"A lot of institutional reforms in the area of cash handling, upgrading and improving the quality of management systems have been carried out over the past 20 years," the CBA said in a statement.

Thus, the legal and institutional framework of cash management is being brought into compliance with best practices. During this period, the treasury set up a modern infrastructure that meets the high standards of safety; the automation levels increased; and business is being done in accordance with international standards. The optimization of regional systems of governance in accordance with international experience is also being carried out, according to the central bank.

"The central bank, along with meeting the demand for cash, announced the 'politics of pure money in circulation' and ensured the maintenance of the quality of the outstanding banknotes at a high level," the statement said.

In addition, the central bank intends in the near future to fill the ranks of banks of advanced countries with the most effective management systems in all areas of its activity.

August 15 marks the 20th anniversary of the start of the issuance of national currency - manat, which is considered as the main attribute of the sovereignty of Azerbaijan after gaining independence from the Soviet Union in 1991. Since January 2006, the country re-denominated the manat, with one new manat equaling 5,000 previous manats.

The CBA added that it intends to ensure the implementation of the strategic challenge voiced by Azerbaijani President Ilham Aliyev: "I am confident that the manat, as a strong currency, will play a role in solving the economic and social issues of Azerbaijan in the coming years."